Hawick Knitwear, the Scottish textiles firm, is to cut 15% of staff at the business because of the consumer slowdown.
Hawick Knitwear, which is based in Hawick in Scotland, has entered into a 30-day period of consultation with trade union representatives to discuss the potential loss of up to 36 jobs.
Hawick said that the proposed cut back was due to the slowdown in consumer spending, which it expected would lead to a reduction in repeat orders from its customers.
Rising energy prices and the cost of the national minimum wage alongside increased competition from Far Eastern suppliers have added to the firm's problems.
Hawick Knitwear managing director Benny Hartop said: "I very much regret the need to take this action, but in order to safeguard the future of our business and the livelihoods of our remaining 222 employees, it has been necessary. We shall, of course, do all that we can to assist those employees affected in finding alternative employment."